Kenvue Inc (NYSE:KVUE) shares fell about 2% on Thursday after the consumer health company reported second quarter results that narrowly missed Wall Street expectations, while margins declined from a year earlier.
The company reported adjusted diluted earnings per share of $0.31, compared with the $0.32 consensus estimate
Revenue was $3.96 billion, slightly below the $3.97 billion expected by analysts. Kenvue said net sales increased 3% from the prior-year period, with organic sales growth of 1.6% and a 1.4% benefit from foreign currency. Organic growth was driven by favorable value realization of 0.9% and volume growth of 0.7%.
Gross profit margin declined to 58.2% from 58.9% a year earlier, while adjusted gross profit margin fell to 60.2% from 60.9%. The company attributed the changes primarily to inflation, tariffs and unfavorable transactional foreign exchange, partly offset by supply-chain productivity savings and favorable value realization. Operating income margin was 17.7%, compared with 18.0% in the prior-year period.